FORMATION AUTHORITY: The Board of Trustees was established by the Board of Supervisors under the Declaration of Trust for Maricopa County, Arizona, Self-Insured Benefits Trust Fund as adopted on January 26, 2011.

COMPOSITION: 3.1.1. The Benefits Trust shall be administered by no fewer than six (6) joint trustees, all of whom shall be citizens of the United States of America, residents of Maricopa County, Arizona, and at least 21 years of age. The trustees shall be reasonably familiar with the subject matter of the appointment and shall be appointed as follows:

3.1.1.1. Five (5) members shall be appointed by the members of the Board of Supervisors to serve four (4) year terms. Each district shall have one appointment. The individuals appointed by the Board members shall not be employees or elected officials of Maricopa County.

3.1.1.2. The County Manager shall appoint one County employees to serve as a Trustee for an indefinite term.

3.1.1.3. The Trustees should have experience in at least one of the following areas: health care administration, benefits plan administration, health insurance administration, or financial analysis.

DUTIES AND POWERS: The Board of Trustees shall:

5.1.Adopt policies, rules, and procedures to enable the Benefits Trust to do all such lawful acts and things permitted by this Declaration of Benefits Trust.

5.2.Use the monies deposited in the Benefits Trust Fund to administer, staff, manage, and fund the Health and Welfare Benefits Program for the Participants for any purpose permitted by law, including, without limitation, investment and payments (a) for losses or claims, (b) for insurance, (c) for risk management consultations related to health and welfare benefits or this Declaration of Benefits Trust, (d) for stop loss insurance, (e) on behalf of qualified Participants, (f) for vision and dental care, wellness programs and any similar or related health and welfare plans or programs that may be administered under the Benefits Trust.

5.3.Delegate in writing to the Administrator the power and authority to carry out the day-to-day administration of the Benefits Trust.

5.4.As long as required by law, maintain or cause the Trust Fund to be maintained by the Treasurer or such other financial institution as the Board may reasonably select, consistent with the requirements of this Declaration of Benefits Trust.

5.5.Cooperate with the Administrator in accordance with A.R.S. § 11-981.

5.6.Employ such other professionals as are necessary to accomplish the purposes of the Benefits Trust, including professionals to provide accounting and auditing services, financial advisory services, health care claims services, investment services, legal services, and other advisory services.

5.7.Cause staff made available by the County’s Finance Department to prepare the financial statement for the annual audit required by A.R.S. § 11-981 and provide to such staff all information necessary to prepare such statement in accordance with generally accepted accounting principles.

5.8.Assist the County and the external auditor retained pursuant to A.R.S. § 11-981 with the annual audit required by law (the “Annual Report”).

5.9.Cause the Annual Report to be maintained in the offices of the Clerk for a period of not less than ten (10) years.

5.11.Consult with the Board of Supervisors, County Manager, and Administrator on financial and other issues relating to the Health and Welfare Benefits Program, including appropriate premiums and rates for Participants.

5.12.Comply with all applicable requirements of local, state, and federal law relating to county self-insurance programs for the management and administration of employee health and welfare benefits.

5.13.Return all assets in the Benefits Trust Fund to the County for deposit in its general fund upon dissolution of the Benefits Trust under Article 9 below.

5.14.Collect, hold, and maintain deposits from the County in the Benefits Trust Fund for the purposes set forth in this Declaration of Benefits Trust.

5.15.Receive additions to the assets of the Benefits Trust Fund.

5.16.Provide for the investment of Benefits Trust monies in a manner consistent with the provisions of Title 35, Chapter 2, Article 2.1, Arizona Revised Statutes.

5.17.Make arrangements for payment of eligible claims in a manner designated by the Administrator, including by wire or other transfer to the designated accounts of each health and welfare benefits administrator (“HWBA”), in accordance with this Declaration of Benefits Trust and any agreement between the County and the HWBA then in effect.

5.18.Pay taxes, assessments, reasonable insurance premiums, and reasonable administrative expenses of each HWBA and any other expenses incurred in the collection, care, administration, and protection of the assets of the Benefits Trust Fund.

5.19.Subject to the limitations set forth in schedule A, prosecute in the name of the County, defend, or compromise actions, claims, or proceedings for the protection of the assets of the Benefits Trust Fund and the exercise of the powers vested in the Trustees under this Declaration of Benefits Trust, including, but not limited to, actions for recovery of the cost of medical care and treatment pursuant to A.R.S. § 12-962 and other applicable law.

5.20.Execute and deliver all instruments that will accomplish or facilitate the exercise of the powers vested in the Board of Trustees under this Declaration of Benefits Trust.

5.21.In the event that the some or all of the assets of the Benefits Trust Fund are deposited with a financial institution other than the Treasurer, cause that financial institution to make available to the Board of Trustees on at least a monthly basis statements that identify all Benefits Trust Fund transactions made as of the date of the statement, including such supporting documentation or detail as the Board of Trustees or its authorized designee may reasonably request.

5.22.Designate appropriate personnel made available by the County, who are independent from those involved in paying claims submitted to the Benefits Trust, to review the statements described in Section 5.21 in a reasonable manner and otherwise comply with the oversight provisions set forth in the Sections 5.7-5.10 above.

5.23.Cause the Administrator or his or her designee to be provided with all reports, financial statements, and other information regarding the Benefits Trust Fund or any HWBA, as the Administrator or designee may reasonably request.

5.24.Cause a financial institution holding any of the Benefits Trust Fund assets to waive in writing any right of setoff against the assets of the Benefits Trust Fund.

5.25.Cause all other appropriate actions to be taken in connection with the Benefits Trust Fund and this Declaration of Benefits Trust that are necessary to carry out its obligations hereunder.

5.26.Conduct all activities, including delegation of any of its duties, solely in a manner consistent with its fiduciary responsibilities.